Donald Alex Blenkarn
Mr. Don Blenkarn (Mississauga South):
Mr. Speaker, strong downward pressures have appeared on interest rate markets both here and in the United States. Clearly, new, strong, conservative Governments with effective mandates for business oriented policies are largely responsible for the increase in confidence that has led to falling interest rates.
In the United States, three-month Treasury bills were auctioned on November 5 for 8.82 per cent. Today our three-month Treasury bills were auctioned to yield 11.2 per cent, which is a drop of 22 basis points from last week.
Traders have indicated to me that they feel that our interest rates could drop much more rapidly if the Bank of Canada would discontinue its practice of relating exchange rates to interest rates.
May I suggest to the Minister of Finance (Mr. Wilson) that, in view of the fact that interest rates, while dropping here are dropping much more rapidly in the United States, he instruct the Bank of Canada to stop influencing interest rate markets in Canada and let rates drop as low as they can. This will save the country substantial costs in financing the national debt, and more than anything else will stimulate new business activity and the consequent result of increasing new job opportunities.
Subtopic: INFLUENCE ON INTEREST RATES